Railroad employees who are planning to retire should be aware of what steps to
take and what documents are required when applying for an annuity from the Railroad Retirement Board (RRB). Being prepared
can prevent needless delays and ensure that payments from the RRB begin as soon as possible after retirement. The following
questions and answers describe the application process and other related items that retiring employees should be aware of.
1. How are railroad retirement
annuity applications filed?
Applications are filed through the RRB’s
field offices. Applicants may file in person or by telephone and mail. Those filing in person may do so at any
RRB office or at one of the office’s Customer OutReach Program (CORP) service locations. Applicants
filing by telephone receive the same information and instructions that are provided to those filing in person; forms requiring
signatures and other documents are then handled by mail.
The
addresses and phone numbers of all the RRB’s field offices are available on the agency’s
Web site at www.rrb.gov or by calling the toll-free RRB Help Line at 1-800-808-0772. The RRB Help Line is an
automated telephone service available 24 hours a day, 7 days a week. RRB field offices are open to the public from 9:00
a.m. to 3:30 p.m., Monday through Friday, except on Federal holidays.
2. Can an application be filed prior to a person’s actual retirement
date?
The RRB accepts annuity applications
up to 3 months in advance of an annuity beginning date, which allows the RRB to complete the processing of most new claims
by a person’s retirement date. Also, effective for applications filed on or after January 1, 2006,
an employee can be in compensated service while filing a disability application provided that the compensated service terminates
within 90 days from the date of filing. When an employee files a disability application while still in compensated service,
it will be necessary for the employee to provide a specific ending date of the compensation. Compensated service
includes not only compensati on with respect to active service performed by an employee for an employer, but also includes
pay for time lost, wage continuation payments, certain employee protection payments and any other payment for which the employee
will receive additional creditable service.
To expedite the filing process, applicants
should contact the RRB to schedule time for a pre-retirement consultation and also to confirm their eligibility and be advised
as to the required documents. The consultation can be conducted in person, or by telephone, with an RRB representative
who will provide an annuity estimate, explain a retiree’s benefit rights and responsibilities, and answer
related questions.
Railroad employees can also get estimates
of their future annuities over the Internet. Employees can access this service, called “Retirement
Planner,†by visiting www.rrb.gov and clicking on “Benefit Online Services (MainLine)†for directions
on establishing an RRB Internet Services account.
3. What are some of the documents required with an application?
·
All supporting forms requested on the annuity application.
· All applicants have to furnish
proof of their age.
· All applicants
should be prepared to furnish the notice of any social security benefit award or other social security claim determination.
· An employee may
be required to submit information regarding any other Federal, State or local government pension for which he or she also
qualifies, as well as certain other payments not covered by railroad retirement or social security, such as from a non-profit
organization or from a foreign government or a foreign employer.
·
An employee or survivor filing for a disability annuity is required to submit supporting medical information from his or her
treating physician, as well as any reports or records from recent hospitalizations. He or she may also be asked to go
for one or more specialized medical examinations. If an employee disability applicant is receiving workers’
compensation or public disability benefits, notice of the amount and beginning date of such payments must be submitted.
· An employee will
have to furnish proof of any military service claimed.
·
A spouse, divorced spouse or widow(er) applying for a railroad retirement annuity must furnish proof of marriage to the employee.
A divorced spouse must furnish proof of a final divorce from the employee, as well as proof that any subsequent marriages
have terminated.
·
A spouse, divorced spouse or survivor also qualified to receive a public service pension must submit information regarding
that pension.
·
All applicants have to provide banking information necessary for the Direct Deposit of their benefit payments.
A booklet, “Furnishing Evidence to Support Your Claimâ€
(Form RB-3), gives detailed information as to the types of proofs that are required when filing for an annuity, as well as
sources from which these documents can be obtained. The booklet is available free of charge at any RRB office or at
www.rrb.gov.
4. Can proofs be filed in advance of retirement?
Railroad
employees are encouraged to file proofs of their correct birth date and their military service well in advance of retirement.
The information will be recorded and stored electronically until they actually retire. This will expedite the annuity
application process and avoid any delays resulting from inadequate proofs.
If
employees do not have an official record of their birth or military service, their local RRB office will explain how to get
acceptable evidence. All evidence brought or mailed to an RRB office will be handled carefully and returned promptly.
5. What
is the retroactivity of a railroad retirement application?
The retroactivity of a railroad retirement
annuity application is limited to 1 year for disability annuities and 6 months for full age annuities. There is generally
no retroactivity for reduced age annuities.
Retroactivity of a survivor annuity
application is 1 year for disabled widow(er)s and 6 months for full retirement age widow(er)s, mothers (fathers), children
and parents. Retroactivity for widow(er)s ages 60-61 is 6 months if it does not increase the age reduction (this does
not apply to surviving divorced spouses or remarried widow(er)s). Otherwise, there is generally no retroactivity for
reduced age widow(er)s’ annuities.
6.
Are retiring railroad employees required to relinquish their rights
to their railroad jobs?
An employee annuity based on age cannot be
paid until the employee stops railroad employment and gives up any rights to return to work for a railroad
employer. While an annuity based on disability is not paid until an employee has stopped working for
a railroad, employment rights need not be relinquished until the employee attains full retirement age. However, in order
for a supplemental annuity to be paid by the RRB, or for an eligible spouse to begin receiving annuity payments, a disabled
annuitant under full retirement age must relinquish employment rights. And, regardless of age and/or earnings, no railroad
retirement annuity is payable for any month in which a re tired or disabled employee annuitant, a spouse annuitant or a survivor
annuitant works for an employer covered under the Railroad Retirement Act. However, service for less than $25 a month
to a local lodge will not prevent payment of the annuity for that month.
Railroad
retirement annuitants may work in nonrailroad employment, but benefits may be reduced if a beneficiary under full retirement
age works after retirement and earnings exceed annual exempt amounts. Additional earnings deductions are assessed if
a retired or disabled employee annuitant, or a spouse annuitant, works for his or her last pre-retirement nonrailroad employer,
regardless of age or the level of earnings.
Special restrictions also apply to
any earnings by disabled employees.
7. How soon after filing can an applicant expect payment?
Under the RRB’s Customer Service Plan, persons who filed for their railroad retirement
employee or spouse annuity in advance will receive their first payment, or a decision, within 35 days of the beginning date
of their annuity. Persons who did not file in advance will receive their first payment, or a decision, within 65 days
of the date they filed their application. Those who filed for a railroad retirement survivor annuity or lump-sum benefit
will receive their first payment, or a decision, within 65 days of the date they filed their application, or became entitled
to benefits, if later. Widows or widow(er)s who are already receiving a spouse annuity will receive their first payment,
or a decision, within 35 days of the date the RRB receives notice of the employee’s death.
For disability annuities, no payment can be made until all medical evidence
has been evaluated. Consequently, an annuity based on disability takes longer to process than an annuity based on age
and service. And, a waiting period of 5 months is required after the onset of disability before disability annuity payments
can begin. Under the Customer Service Plan, persons who filed for a railroad retirement disability annuity will receive
a decision on their claim within 105 days from the date they filed their application. If they are entitled to disability
benefits, they will receive their first payment within 25 days of the date of that decision, or earliest payment date, whichever
is later.
Of course, claims for some benefits may take longer
to handle than others if they are more complex, or if information from other people or organizations is needed. If this
happens, the RRB will provide an explanation and an estimate of the time required to make a decision.
8. How
are railroad retirement payments made?
Persons applying for railroad retirement benefits will
be automatically enrolled in the U.S. Treasury’s Direct Deposit Program, which electronically transfers
Federal payments into individuals’ checking or savings accounts. Direct Deposit waivers are, however,
available to individuals who determine that Direct Deposit would cause a hardship, and to individuals without bank accounts.
